Officer performance evaluations

We prepare scorecards for our commercial lenders and ROE for a lender's new or renewed loans (over $250k) is one of the elements of the scorecard. We compare the actual pricing ROE to our model's target ROE for these loans. If the lender's actual ROE exceeds the target ROE they earn a percentage of their salary (in conjunction with growth and quality goals).

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Jeff Manser
Senior VP & CFO
Bank of Idaho
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Original Message:
Sent: 07-10-2018 18:54
From: Andrew Hancock
Subject: Officer performance evaluations

​For 45 years our company included the profitability of the market an officer worked as a component of their individual performance score. With the changes imposed through Dodd-Frank this component has been removed from our evaluations and I believe it has caused a mismatch in officer performance scores and the most important performance goal of the market,income. I was wondering if anyone had come up with a good way to incorporate aspects of profitability into their officer performance evaluations? ( i.e efficiency ratios or net interest margins)

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Andrew Hancock
Regional President
FirstBank
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